"Gold Finance reported that Barclays believes the Fed has indicated it could lower interest rates while simultaneously shrinking its balance sheet, but recommends ending balance sheet reduction early due to risk management concerns. Barclays still expects the Fed to end quantitative tightening in December, which will be announced by the Federal Open Market Committee (FOMC) in November. 'In 2019, reserve scarcity exacerbated already tight repo market conditions, driving funding rates sharply higher, which caused significant disruptions in the US Treasury market,' wrote Joseph Abate, a Barclays strategist, in a note to clients. 'We believe this outweighs the risks of keeping reserves modestly above what is needed.'"